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Gaming, video streaming and social media have had a far bigger impact on alcohol consumption than Gen Z concerns over its effect on health, according to the head of one of the world’s largest brewers.
Atsushi Katsuki, chief executive of Japan’s Asahi, said “there’s no doubt” the rise of digital entertainment platforms had hit demand for his sector’s products far more than abstinence driven by concerns over the harmful impact of drinking.
“Alcohol used to occupy a much bigger share of people’s entertainment and joy,” he told the Financial Times. “In the past 10 years, the number of entertaining things has grown including gaming, so I believe alcohol’s share of fun, enjoyment and happiness has decreased.”
Katsuki’s comments add a new dimension to the debate over whether a global decline in drinking among younger generations indicates that alcohol is the “new tobacco”, as global health regulators push for health warnings on alcoholic products.
Global alcohol sales declined 1 per cent in volume but rose 2 per cent in value in 2023, according to data provider IWSR, as consumers moderated consumption but sought out more premium beverages.
Investors are trying to figure out whether alcohol is in structural decline because of health concerns and lifestyle changes, or simply taking a hit from cost of living pressures.
Asahi, which as well as its namesake brand owns beers including Peroni and Grolsch, views the societal shift as an opportunity. It is targeting bloggers, gamers and influencers — a demographic Katsuki said had been overlooked, who Asahi hopes will consume its high-end booze, low-alcohol alternatives and premium soft drinks at home.
The World Health Organization has recommended that there is “no safe level” of alcohol consumption, proposing that governments mandate tobacco-style warning labels on drinks — a measure Ireland will be the first country to introduce from next year.
Brewer stock prices were hammered at the start of the year after the US surgeon-general said alcoholic beverages should carry a warning to raise greater awareness about their link to cancer.
Katsuki said he believed there was “little scientific basis” to say there was no safe level for alcohol consumption, pointing to certain studies that supported the notion that alcohol could help increase life expectancy, and expressed his belief that booze had wellbeing benefits when consumed in moderation.
Alcohol was far from the next tobacco in Asahi’s eyes, Katsuki said, because smoking had no health or wellbeing benefits, while his industry had been making efforts to promote responsible drinking and had never denied the risks of overconsumption or addiction.
Some analysts fear alcohol sales may be further hit by the rising popularity of obesity and diabetes drugs such as Ozempic. However, Asahi has yet to see any impact and Katsuki suggested that consumption may even rise as a result of weight-loss drugs, as people who were previously advised to avoid drink may be able to consume alcohol once their health improves.
Asahi’s shares recently hit a record high, receiving a tailwind from the return of inflation to Japan following decades of stagnant prices and a new shareholder returns policy after cutting its debt.
Katsuki said his desire to do big deals and his faith in the bright future of the US market — the biggest missing piece for Asahi, which is present in Japan, Europe and Oceania — were undiminished despite US President Donald Trump’s tariffs.
